Institute for Social and Economic Change
Working Paper: 244
Health, Labour Supply and Wages: A Critical
Review of Literature
This article addresses the research question, how does general physical health status influence the labour supply behaviour and labour productivity? It deals with the issues that are dealt by the economists to explain the mechanism through which health as a form of human capital is related to labour productivity and labour supply decision. This article discusses the definition and measurements of health, theories that try to explain the health-productivity linkage, followed by a description of empirical studies that address the issue, both at the macro and micro levels. The review identifies the knowledge gaps important for further research in this area.